Policy Pulse #4 | June 30, 2022
This Week in Policy
Technology, Media and Telecommunication
Relief for Telcos as DoT drops SUC rate
The Department of Telecommunications (DoT) has dropped the spectrum usage charge (SUC) floor rate of 3%, in a big relief to the telecom companies as they will save substantially on the statutory fees payable in the 5G spectrum sale. It is expected that removing the SUC will see increased participation from telcos in the 5G bidding process. Read more
DoT releases spectrum leasing guidelines
The Department of Telecommunications has issued fresh guidelines, allowing telecom companies to lease spectrum to companies to set up captive non-public networks, and facilitating spectrum leasing for the first time in India. Pursuant to the guidelines, private companies shall be able to obtain IMT spectrum from one or more telecom service providers through an access service license. Read more | Guidelines
Deadline for compliance with cybersecurity rules extended
The Indian Computer Emergency Response Team (CERT-In) has extended the deadline for compliance of the newly promulgated cybersecurity rules to September 25. The rules inter alia had placed requirements on VPN service providers to store usage-related data for a period of five years, prompting several prominent VPN service providers to announce intentions to exit India. Read more
Manufacturing
15 companies selected under PLI 2.0 for white goods
15 entities, including Adani Copper Tubes, LG Electronics and Wipro Enterprises have been selected provisionally as beneficiaries of the second round of the PLI scheme on white goods. These entities are expected to have a production of Rs. 25,583 crore in the coming five years, and directly employ up to 4,000 persons. Read more
Companies availing FAME subsidies to face tighter scrutiny on local manufacturing requirements
EV firms availing subsidies under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME-India) will now have to verify the extent of imported components in their vehicles from a chartered accountant with the Comptroller Auditor General. To fulfil the government’s goal of making India a hub for EV manufacturing, the companies must comply with strict local sourcing requirements for EV components. Read more
Banking, Finance and Insurance
CBDT clarifies manner of charging TDS for crypto assets
The Central Board of Direct Taxes has issues detailed guidelines on the manner of deduction of TDS on the sale of cryptocurrencies. The primary responsibility of deducting TDS, the CBDT has clarified, lies with the buyer of the crypto asset or their broker. However, the buyer may enter into a contract with the crypto exchange, permitting it to deduct TDS on their behalf. Read more | Circular
FinMin permits state-owned NBFCs to issue Letters of Comfort
The Finance Ministry has allowed state-owned NBFCs to issue letters of comfort to banks, in order to fund tie-ups for infrastructure projects. The same had been banned by the Finance Ministry in March. However, in view of the importance of state-owned NBFCs to the infrastructure sector, the practice has now been permitted. Read more
Foreign Affairs
Prime Minister Modi meets global leaders at G7 Summit, promotes sustainable development, food and energy security
Indian Prime Minister Narendra Modi met with with his Argentinian and Canadian counterparts, the Chancellor of Germany, and the Presidents of South Africa and Indonesia at the recently concluded G7 Summit in Munich. Sustainable development was a key theme in his addresses at the Summit. Read more here and here.
Malaysia, India hold high-level defence talks
India and Malaysia held defence ministry-level talks, revolving around the Tejas Light Combat Aircraft and the sustenance of Malaysia’s Russian origin Su30 MKM fleet. India is offering to sell Tejas aircraft to Malaysia, which is on the look out for 18 new light fighter jets, as well as the maintenance of Malaysia’s existing fleet of Su30 aircraft. Read more
Retail and e-commerce
GST relief for small e-commerce sellers
The GST Council has decided to exempt suppliers on e-commerce having turnover of less than Rs. 40 lakh and Rs. 20 lakh for goods and services respectively. It is expected to reduce the compliance burden for small businesses to access markets through e-commerce. Read more
Healthcare
Emergency use recommended for India’s 1st mRNA vaccine
The Drugs Controller General of India has approved emergency use authorisation to India’s first mRNA vaccine for COVID-19. The vaccine was developed by Pune-based Gennova Biopharamaceuticals. While other vaccines are to be stored at sub-zero temperatures, the mRNA vaccine can reportedly be stored at temperatures as high as 2-8 degrees Celsius. Read more
Covovax approved for usage in 7-11 year olds
The Drugs Controller General of India as permitted the vaccine Covovax, developed by the Serum Institute of India, for restricted emergency use in children between 7 and 11 years of age. The vaccine was previously approved for use in children between 12 and 18 years of age in March this year. Read more
Trade and Commerce
G7 announces $600bn global infrastructure project
In a bid to counter China’s Belt and Road initiative, the G7 Group announced on Sunday that it would raise US$600 billion for global infrastructure projects in poor countries. It is expected that private corporations would play a pivotal role in this project - a chasm of difference with the Chinese state-run BRI proposal. Read more
WTO presses India on wheat export ban
India’s wheat export ban, exercised under the peace clause citing high temperatures and global supply shortages due to the Russia-Ukraine war, came under fire at WTO. India banned wheat exports on May 13 resulting in Chicago Board of Trade wheat futures spiking by 6% on May 16, the first day of trading. US, Japan, Canada, and Thailand questioned these measures, as USFDA predicts Indian wheat production to be above annual volume of production from 2015-2020. Read more
Sustainability and Energy
Delhi Airport is India’s first airport to be powered by hydro and solar power
Indira Gandhi International Airport (IGIA), New Delhi has become the first airport in India to run entirely on solar and hydro power - renewable energy sources - for its energy needs. It is anticipated that this move will cut CO2 emissions by about 2 lakh tonnes each year. Read more
CAQM directs NCR states to adopt a standard list of approved fuels
The Commission for Air Quality Management (CAQM) has directed NCR states to adopt a standard list of approved fuels. This list includes petrol, diesel, hydrogen / methane, natural gas, LPG and electricity. Other fuels, such as light diesel oil and naphtha were banned in January. Read more
NITI Aayog releases report on harnessing green hydrogen
The NITI Aayog has released a report titled “Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India”, delving into the importance of hydrogen as a fuel source and highlighting the need for a concerted policy push for harnessing the same. Highlighting the opportunities that sector presents, both commercially as well as from a sustainability perspective, the report provides a roadmap on how such value can be captured. Read More | Report
CERC nod to India’s third power exchange
The Central Energy Regulatory Commission has permitted the Hindustan Power Exchange Limited (HPXL) to commence its operations. HPXL was previously given permission to establish and operate an exchange in May 2021. The CERC has now approved its rules, bye-laws and business rules, thereby permitting it to begin operations. Read more
Agriculture and FMCG
Punjab budget: Rs. 11,560 Cr earmarked for agriculture
Punjab Finance Minister Harpal Singh Cheema announced that the government would be allocating Rs. 11,560 Crore for FY 2022-23 in the field of agriculture. The budget allocation also includes a power subsidy of Rs. 6,947 Cr in agriculture. A further Rs. 200 Cr has also been allocated for controlling the practice of stubble burning. Read more
Labour
NITI Aayog issues report on India’s gig and platform economy
The Niti Aayog has launched a report titled ‘India’s Booming Gig and Platform Economy’, presenting perspectives and recommendations for India’s gig and platform economy. The report provides an estimate of the size and job generation potential of the sector, enumerates the opportunities and challenges it faces and highlights the global best practices on social security and other measures. Read more | Report
Logistics
9 National Highway projects inaugurated in Rajasthan
Union Minister for Road Transport and Highways, Nitin Gadkari, laid the foundation stone for 9 National Highway projects totaling 243 km length worth Rs. 1,357 crore in Rajasthan. 254 new bypasses were also announced in the state at the cost of Rs. 5,000 crore. Read more
Gujarat proposes 1,630 km coastal corridor
The Gujarat Government has proposed a new 1,630 km long coastal corridor from Umargam to Narayan Sarovar, under the PM Gati Shakti scheme. The Government aims to boost tourism and economic activity in the state through the corridor. 300 km of the corridor has been earmarked as part of the first phase of the project. Read more
Miscellaneous
Parameswaran Iyer to replace Amitabh Kant as NITI Aayog CEO
Iyer, who is a 1981-batch IAS officer of the UP cadre, is set to take over from Amitabh Kant post the latter’s retirement on 30 June 2022. He will be the third CEO appointed to the NITI Aayog. A brief profile or Mr. Iyer may be found in our ‘Profile in Focus’ section below. Read more
A Few Good Reads
René Van Berkel, Dagmar Walter and Shombi Sharp write in the Hindu about bringing MSMEs into global value chains.
Rudra Chaudhuri advocates for a National Technology Coordinator in The Print.
Amidst the crypto winter, Packy McCormick writes about the future use cases of Web3, and what advancements one should anticipate in the space.
Pranay Kotasthane explores the history of armed forces pensions and why the issue now appears to have come to a head, in the Hindustan Times.
KP Krishnan discusses mechanisms to monitor and assess the performance of statutory regulatory authorities in the Business Standard.
Bain & Company has released a report exploring the artificial intelligence landscape in India.
Upcoming Events
Getting Agricultural Markets Right
July 6 | Gulmohar Hall - Habitat Centre, New Delhi
ICRIER (in collaboration with the National Stock Exchange) is organising a conference on ‘Getting Agricultural Markets Right.’ The objective of this conference is to find an ecosystem and to introduce technology towards developing well-functioning agricultural markets, so that its key stakeholders, the farmers of India, may be able to get the best price for their produce and do the best price discovery for their produce across space and time. Shri Narendra Singh Tomar, Hon’ble Minister of Agriculture and Farmers’ Welfare, has been invited as the Chief Guest for the event. To register, click here.
Arbitrating Indo-UK Commercial Disputes
July 5 | Mansion House, Walbrook, London
The Indian Council of Arbitration, with the support of FICCI, is organising an international conference on arbitrating Indo-UK commercial disputes. The conference shall be inaugurated by the Hon’ble CJI, Justice NV Ramana, and Shri Kiren Rijiju, Hon’ble Minister of Law and Justice, shall deliver the special address. The conference is aimed at jurists, policymakers, lawyers, business leaders and government officials, and shall acquaint participants on the latest developments in arbitration. Details | Registration Link
PICUP Fintech Conference
July 20 | Federation House, FICCI, New Delhi | Virtual
The Indian Banks Association and FICCI are jointly organising the 4th edition of the PICUP Fintech Conference and Awards. The conference seeks to bring together fintech players, BFSI companies, technology experts and policy makers, to discuss and analyse innovations in the financial services industry, and future opportunities for the same. Shri Alkesh Kumar Sharma, Secretary, MeitY shall deliver the inaugural address at the conference. Details | Registration Link
2nd Indo-Pacific Business Summit
July 5-7 | CII, New Delhi
CII, along with Ministry of External Affairs, is organising the 2nd edition of Indo-Pacific Summit. The summit will have participation of government, enterprises, business chambers, think tanks & academia from all the countries in the region and cover tracks such as Geopolitical and Economic, Trade & Investment, Rebuilding the Green Economy, Power of Digital and Cross-Border People Connect. The chief guest for the event is Dr. S Jaishankar, Hon’ble Minister of External Affairs, Government of India. Details
Tweets of the Week
Hon’ble Prime Minister Shri Narendra Modi expresses condolences at the passing of Sheikh Khalifa bin Zayed Al Nahyan:
A G7 leaders statement dedicated to China:
On India’s Statistics Day, a thread on the great PC Mahalanobis:
Notifications
The Ministry of Environment, Forest and Climate Change has notified the Forest (Conservation) Rules, 2022. The rules may be found here.
The Food Safety and Standards Authority of India (FSSAI) has released a draft of the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, and Prebiotic and Probiotic Food) Regulations, 2022 (2022 FSSAI Regulations) for public comments. The 2022 FSSAI Regulations are intended to supersede the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016. Comments are to be shared on regulation@fssai.gov.in by August 23, 2022. The draft may be accessed here.
The Ministry of Finance has notified an extension to the collection of cess under the Goods and Services Tax (Compensation to States) Act, 2017. See here.
Profile in Focus
Shri Parameswaran Iyer
Shri Parameswaran Iyer is a 1981-batch IAS officer of the UP cadre, with over 20 years of experience in the water supply and sanitation sector. Voluntarily retiring from the IAS in 2009, he joined the World Bank as a water resources manager, working in Vietnam, China, Egypt and Lebanon. Upon his return to India in 2016, he was appointed by the Government of India as the secretary of the Ministry of Drinking Water and Sanitation as a lateral entrant. He led the flagship Swachh Bharat Mission of the Government of India, an India-wide sanitation campaign to eliminate open defecation and improve solid waste management, between 2016 and 2020. In 2020, he returned to his role at the World Bank. Shri Iyer has also authored a book, Method in the Madness in 2021, reflecting on his time with the Government of India and the World Bank.